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Social Entrepreneurs Entrepreneurial Incentives that Drive Philanthropic Giving.

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Presentation on theme: "Social Entrepreneurs Entrepreneurial Incentives that Drive Philanthropic Giving."— Presentation transcript:

1 Social Entrepreneurs Entrepreneurial Incentives that Drive Philanthropic Giving

2 Social Entrepreneurs Defined field of growing interest for the new generation of technology entrepreneurs. The title of Social Entrepreneur does not define how the donor established his or her wealth. Instead, it describes how individuals (who usually recieve financial commitments) address social challenges through entrepreneurial pursuits

3 Social Entrepreneurship Encompasses a range of dynamic management strategies for pursuing optimal social and environmental impact Harness individual and collective action through non profits and social purpose businesses, cross sectoral alliances, private, or public sector platforms

4 Social Entrepreneurs Defined Funded by entrepreneurs who broke the business mold and are seeking to break the social mold Capitalist approach to philanthropy Support entrepreneurship to drive social good

5 USA TODAY, November 3, 2005 Ebay founder takes lead in social entrepreneurship Social Entrepreneurs BY GIFTING Pierce Omidyar, E-bay Founder Donated $100 million Tufts University Microfinance program

6 Social Entrepreneurs BY CREATING A FOUNDATION Sergey Brin and Larry Page, Google Founders Created the Google Foundation Gifted $90 million for into the newly launched foundation USA TODAY, November 3, 2005 Ebay founder takes lead in social entrepreneurship

7 Professor J. Gregory Dees, Faculty Director, Duke's Fuqua School of Business Center for the Advancement of Social Entrepreneurship (CASE) Successful entrepreneurs not only change the pattern of production, they improve it. We can define philanthropic entrepreneurship as the productive efforts of an individual, team, or organization that reform or revolutionize the patterns by which private resources and relationships are mobilized and deployed to effect social change. http://www.fuqua.duke.edu/centers/case/articles/0805/corner.htm

8 Professor J. Gregory Dees, Faculty Director, Duke's Fuqua School of Business Center for the Advancement of Social Entrepreneurship (CASE) 1.Introducing a new good or quality of a good 2.Utilizing a new method of production or distributio 1.A FOUNDATION’S PROGRAM RELATED INVESTMENTS 2.VENTURE PHILANTHROPY In The Theory of Economic Development, Schumpeter identifies five ways in which entrepreneurs create new combinations, thus reforming or revolutionizing the pattern of production. http://www.fuqua.duke.edu/centers/case/articles/0805/corner.htm

9 Professor J. Gregory Dees, Faculty Director, Duke's Fuqua School of Business Center for the Advancement of Social Entrepreneurship (CASE) 3.Taking existing products into new markets 4.Drawing on a new source of supply 5.Creating a new form of organization or industry structure. 3.LAUNCHING COMMUNITY FOUNDATIONS 4.EMPLOYEE GIVING CAMPAIGNS 5.COMMUNITY FOUNDATIONS http://www.fuqua.duke.edu/centers/case/articles/0805/corner.htm

10 TRADITIONAL SOCIAL PHILANTHROPY VS. ENTREPRENEURSHIP Alleviate the symptoms of problems Make a grant to Habitat for Humanity Eliminate the causes of problems Make business loans to low income families

11 Prerequisites for being a Social Entrepreneur Social Entrepreneurs Must understand and often alter the social system that creates and sustains the problems in the first place To make ecosystem change more systematic, social entrepreneurs should create a map of their ecosystem that identifies all of the players adn environmental conditions along with the relationships between them (SSIR, Winter 2008 page 49)

12 Frameworks for Social Entrepreneurs Ecosystem Approach Relationships b/w challenges and their environments Ind’l org’n economics framework Gaining competitive advantage Capturing profits Protecting against new entrants and substitute products http://www.fuqua.duke.edu/centers/case/news/1207/Dees_Bloom_Ecosystem.html#cultivateecosystem


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